ECN is not a brand-new channel for currency and stock market trading. In fact, it has been there since 1969. However, it is not that familiar to people who have just entered in stock market exchange realm. The reason is simply that trading to traditional channel network is still more convenient especially for casual marketers. Today, ECN starts to rack up trends which enhance its functions. There are ECN brokers around the world trading currency and stocks. You also can find ECN brokers UK without a problem. So, what is basically ECN brokers?
ECN Brokers UK Explained
It is important to understand that broker still works as the connector between seller and buyer. In ECN, however, the broker uses electronic communication network instead of a direct approach. Additionally, the ECN brokers UK will gather some price quotations from traders. This the price which will be introduced to clients for bid and ask price that will be used as a transaction process. This kind of strategy is beneficial because it allows tighter ask and bid spreads. That means, more stable price occurs in ECN platform.
The next important thing that should be noted is that ECN broker now does not have the power to trade against the client. It is important because it keeps the transaction safe and fair. Furthermore, it is also somewhat cheaper than standard broker because the broker does not have to ‘run’ around to get participants involved in the trade. Trading time is also faster because the participants are already gathered in ECN, and it is very simple for a broker to make a transaction. Now, if you want to join an ECN-based trade, it is important to have the network account. There are many providers for that matter. It is not really necessary to consider which one is the best ECN brokers UK. The reason is simply that currently the quality and the service are pretty similar.